Zcash continued its sell-off on Friday, with declines exceeding 50% and at one point falling to around $310, after a serious "counterfeiting"-related vulnerability revealed earlier in the week continued to weigh on market sentiment.
The price of ZEC at one point dropped by as much as 60%, from around $630 on Thursday to a Dip of around $250 on Friday before partially recovering. Simultaneously, CoinGlass data showed total liquidations exceeded $116 million – the third largest in the market in the past 24 hours, behind only Bitcoin and Ether. However, this figure only reflects a fraction of the total because liquidation data is often updated in batches and tends to be incomplete, so the actual scale of the "order sweeps" may be even higher.
In the past 24 hours, nearly $72 million worth of Longing positions were liquidated and over $45 million worth of Short positions were liquidated. The most intense liquidation occurred between 8 and 9 AM UTC on June 5th. CoinGlass also estimated the liquidation intensity during this session to be 3.72 times higher than the 7-day Medium .
Regarding the vulnerability, Zcash co-founder Zooko Wilcox (currently head of Shielded Labs), along with researchers Jason McGee and Taylor Hornby, confirmed that a flaw has existed in Zcash 's "Orchard" zero-knowledge proof chain since its activation in May 2022.
Taylor Hornby stated that he discovered the bug on May 29th, just hours after Anthropic released the Claude Opus 4.8 model. Hornby said he used a custom-built AI-powered auditing framework (named Zcash-full-stack-auditor) to scan the Orchard circuit and discovered the critical flaw that same evening.
Upon discovery, Hornby promptly sent a proof-of-concept and a full report to the Zcash development team via Signal. By Monday evening of the following week, a soft Fork mitigation measure had been deployed on the mainnet. Subsequently, the full network upgrade (NU6.2) reopened Orchard with the repaired circuit at Block 3,364,600 on June 2nd.
The article "Zcash plummets over 50% due to leaked troubleshooting information" first appeared on CoinMoi .






